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Grocery store giants Albertsons and Safeway to merge

Grocery Store Giants Albertsons and Safeway to Merge

Some big changes might be happening at your neighborhood marketplace. HLN reports two of the country's biggest grocery stores are merging.

'Do you have an Albertsons or a Safeway near you? Albertsons is buying Safeway. No stores are expected to close. So it could create a chain of 2,400 stores with a quarter million employees.'



With that many stores, the chain is poised to become a major competitor to its rivals.

"The two companies say the merge will enable them to cut costs and offer competitive prices to consumers."

According to Bloomberg, the companies also expect the $9 billion deal will allow them to '...expand their reach amid mounting competition from Wal-Mart Stores Inc. and warehouse clubs, as well as online food sellers and delivery services.'

But one commenter on a KOMO article expressed concerns over the merger, saying:

'This is really bad news. Less competition means higher prices and less selection.'

KOMO did speak with one industry consultant- who thinks there's likely nothing to fear about the deal.

'I don't know that you're going to see them have the ability to actually raise prices in any way even though they'll be bigger and there will be more concentration.'

There are reports the Federal Trade Commission will likely require the newly merged chain to sell off some stores. If that's the case, others can buy them and diversify the market, keeping prices balanced.

Join the discussion

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richard March 08 2014 at 7:41 AM

the problem where i live in south west florida, albertson's packed up and left because public's ran them out, they got pressure put on them and they ran, if they ever come back because of the merger i hope they have the balls to stay and not turn tail and dissapoint people who stood by them, they had good products and their fried chicken was great, but they do need to create new jobs and please please pick better management staff, the ones you had here were lazy and very cruel to their employees, good luck and i wish you well....................

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1 reply
pedromvp1999 richard March 08 2014 at 8:09 AM

I liked Albertson's on San Carlos in Fort Myers

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1 reply
Rob pedromvp1999 March 08 2014 at 8:30 AM

Walmart for me on Del Prado.

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Jackie March 08 2014 at 4:02 AM

I hadn't thought about this until someone pointed it out, but it is a fact....the stores (such as: Walmart, Kroger, Costco) are the cheapest with best selection and also sell hard goods, clothing, appliances, etc. as well as groceries. Grocery stores standing alone are going to be a thing of the past, and any store without a big name is not going to make it. Times are changing....I just wonder how this is all going to go down when I think of what happened with Sears and Kmart. I see Sears not making it in our town in the very near future from the looks of customers in their parking lot. Sears, Penneys, and others will be next.

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1 reply
Cheryl Wenzel Jackie March 08 2014 at 6:11 AM

I agree, I can never find anything worth while in Penneys and Sears..

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rolhinton March 08 2014 at 3:07 AM

DEJA VU...THIS IS SEARS AND KMART ALL OVER AGAIN...WE SAW WHAT HAPPENED THERE....LOL

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avanticrzy March 08 2014 at 2:54 AM

They've got to do something to fight walmart....................

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1 reply
bobrav avanticrzy March 08 2014 at 7:47 AM

And that 'something' would be to lower their prices.

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James Mihalka March 07 2014 at 6:55 PM

So now the service at Vons will go down the toilet just like it did at Albertsons. These hedge funds do not care about customer service or how long it takes in the checkout line or having NO ONE in the store to help you find stuff. They only care about the almighty dollar and making themselves rich. In a few weeks/months you will hear them crying they can't compete and they need to close stores, but you won't be able to discuss it with anyone at the stores because they will have fired everyone (which will be the true reason they are losing money) and you are on your own. Sears is the same way, try finding someone who knows about their tools in the tool section, they hired some teenager who has never used tools to have them sell tools because it's cheaper than having a knowledgeable person.

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Deborah March 08 2014 at 1:42 AM

Albertson's here don't do very well - they are on the expensive side but I always make a point to buy my holiday meal meats there because I do like the quality. I haven't seen a Safeway in years (usually when I go to Colorado) they are under the name Von's and are VERY expensive too. Don't know how you take two chains both known for being the "high-priced leaders" is going to merge and then become "competitive" with pricing...........I would LOVE having them Double Coupons here but I know they won't.

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1 reply
Michele Deborah March 08 2014 at 3:57 AM

Albertson's was shut down and closed in certain parts of Florida. Publix has taken over their empty buildings.

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JACK PAULETTE March 08 2014 at 1:11 AM

Years and years ago Louisville, Kentucky was full of Safeway grocery stores and nobody liked them and then Kroger came to town and Safeway left town and i travel a lot and have not seen a Safeway in all these years, since the 1960's.

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1 reply
John JACK PAULETTE March 08 2014 at 2:50 AM

Safeway left a number of regions. Then, it re-entered by buying substantial local chains, particularly those in mid-market, pricewise. For example, about 15-20 years ago Safeway left the Dallas-Fort Worth area but then purchased Randalls-Tom Thumb.

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1 reply
fruitfl John March 08 2014 at 6:41 AM

They bought Randalls and drove it into the ground !

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bfgair March 07 2014 at 8:59 PM

so the King of crap food and rip off prices is going to buy out a well respected and above the average in terms of quality and prices. PLEASE SAY IT ISN'T SO SAFEWAY!!!!!

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andrea March 08 2014 at 12:49 AM

i hope safeway burns in hell they got rid of my dominicks chain i worked there for 29 years and they put 6500 of us out of work i hope albertsons runs them into the ground for what they did to us ive been off a month and havent gotten any phone calls with my experienceof all the jobs i filled out for

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1 reply
fruitfl andrea March 08 2014 at 6:47 AM

Same thing happened to the Genuardi's chain they bought years ago! You should have seen the light and got out when you saw what they were doing to the company! I left Genuardi's after 33 years! I saw it the first year after the sale to Safeway ! There are plenty of jobs out tere, just not making the same kind of $$$ that you made previously ! Bite the bullet on salary and get back into te working class as soon as possible, as future employers don't look highly on someone that has been unemployed for a long time !

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tcsgrandma March 07 2014 at 6:48 PM

This is such a bad move on the part of Safeway. Albertsons are so much higher than Safeway on regular items & their sales are not nearly as good as Safeway's. I for one will not continue to shop my Safeway once Albertsons takes over!!!! I am shocked that the trade commission would let 2 giants merge like this as it will greatly affect pricing to consumers at a time when people are already strugglin!!!

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2 replies
Diana tcsgrandma March 07 2014 at 7:03 PM

All the more to go to WalMart and ALDI's

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kjperes tcsgrandma March 07 2014 at 7:17 PM

Here in Phoenix, a consumer reporter did a comparison last night on the news in response to this story. She bought the same basic items at both stores - Peanut butter, bread, bananas, etc - and Safeway was 25 cents cheaper.

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